Iraq-headquartered energy and utility company Raban Al-Safina for Energy Projects (RASEP) has signed memorandums of understanding (MOUs) with American companies to develop the Nahr Bin Omar gas field in Basra in southern Iraq.

The MOUs were signed with KBR, Honeywell, Baker Hughes, Emerson, and GE, Shafaq News reported, citing an interview by the company’s Business Development Manager for Oil and Energy Projects Ahmed Al-Muhsin with local arabic language newspaper AlSharq.

Halfaya Gas Company (HGC), a subsidiary of RASEP, is leading the project's development under a 15 years’ Build-Own-Operate-Transfer (BOOT) contract signed with South Gas Company, a subsidiary of the Iraqi Ministry of Oil, in late 2023.

Ahmed Al-Muhsin, Business Development Manager for Oil and Energy Projects said the agreements cover engineering designs, supply of equipment, technology and high-efficiency production solutions.

According to RASEP’s website, Bin Omar Development Project consists of two Phases:

Phase I includes the construction and operation of:

· Three stages raw gas gathering and compression facility

· 150 MMSCFD gas processing facilities

· Gaseous and liquid hydrocarbons storage tanks

· Export terminal at Umm Qasr seaport

· Pipelines for gas and liquid hydrocarbons connecting the gathering facility to the gas processing facility, and the gas processing facility to the existing gas network and to the export terminal.

Phase II includes:

· Construction of an additional 150 MMSCFD gas processing facility

· Construction of an additional raw gas gathering and compression facility

· The upstream development of the Bin Omar oilfield to increase the production

The pipeline network planned for the project extends 400 kilometres.

Last month, Baker Hughes announced that it signed a MOU with HGC to establish a collaboration framework for a gas flaring reduction project at the [Nahr] Bin Omar gas processing plant in southeastern Iraq. The field produces 40,000 barrels per day and over 150 million of standard cubic feet per day of associated sour gas, currently flared or used (untreated) as a fuel gas for a nearby power plant.

Shafaq News reported that the budget for the field development contract is estimated at $500 million and for the gas processing plant, which has a planned total capacity of 300 MMSCFD, the estimated budget is $500 million.

 (Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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